Cross-border shopping spikes after introduction of new duty-free limits
Published Tuesday, August 21, 2012 10:25AM CST
Last Updated Tuesday, August 21, 2012 5:54PM CST
New federal regulations on duty-free shopping appear to be having a big impact on cross-border shopping.
According to new figures from Statistics Canada, trips to the U.S. from Canada are up since duty-free rules changed on June 1.
Statistics Canada said overnight trips to the U.S. rose nearly six per cent in June compared to the previous month, reaching a total of 1.9 million trips, which is the highest level since 1972.
Among those, more than 5,000 Manitobans took an overnight trip to the U.S. in June, nearly 1,500 more than in the previous month.
The new exemptions, announced in this year's federal budget, mean Canadians can now buy up to $200 worth of goods for a 24-hour trip across the border without having to pay duty. The previous limit was $50. The exemption for a two to seven-day trip has increased to $800, up from the previous amount of $400.
Statistics Canada said overnight trips to the U.S. rose 7.5 per cent in June, reaching a total of 1.9 million trips that month, which is the highest level since 1972.